New Salary Circular for Public Sector Employees

The Ministry of Public Administration, Provincial Councils, and Local Government has officially announced a New Salary Circular to revise public sector salaries in line with the 2025 Budget Proposals. The new salary scales, which replace those under Public Administration Circular 3/2016, will take effect from January 1, 2025, with actual salary payments beginning on April 1, 2025, without any arrears.

Key changes include:

• Incorporation of Existing Allowances: The Rs. 2,500 monthly interim allowance (Circular 09/2019) and the Rs. 5,000 monthly allowance (Circular 03/2022) are now part of the revised salary structure.
• Incremental Salary Adjustments: Employees will receive 30% of the net salary increase (above Rs. 5,000) from January 2025, rising to 65% in January 2026, and the full revised salary by January 2027.
• Overtime & Allowance Revisions: Institutional special allowances and police special allowances have been adjusted, while overtime payments will be revised under new rates.
• Pension Adjustments: Retirees after April 1, 2025, will receive pensions based on the revised scales, while those retiring earlier will transition by July 1, 2025.

The government has emphasized that these adjustments align with economic conditions and ensure fairness across all public service sectors. Further details are available in Public Administration Circular 10/2025.